What the Morrison government promised to do next

The Liberal Party has promised to simplify the tax system and introduce rolling tax cuts across the wage spectrum to take hold between July this year and July 2024.

Prime Minister Scott MorrisonCredit:Dominic Lorrimer

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Phased in tax cuts. The Coalition’s signature election policy. It will provide tax breaks for more than 10 million Australians and simplify the system by removing the 37 per cent tax bracket entirely. The measures will cost Treasury coffers $158 billion over 10 years, but don’t hold your breath for them all.

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From July 2022, the Coalition will raise the 19 per cent tax bracket from $37,000 to $45,000.

From July 2024, if it holds onto government that long, it will reduce the 32.5 per cent rate to 30 per cent and do away with the 37 per cent rate. This will make a flat 30 per cent tax rate for anyone earning between $45,000 and $200,000.

Tax breaks are on the way.Credit:Dominic Lorrimer

The Coalition’s modelling shows that someone earning $200,000 a year will get a tax cut worth $11,640 compared with $1205 for someone earning $50,000 a year.

Helping hand tax offsets. The most immediate benefit of the Coalition’s tax policy will come from July 1 this year. Australians earning less than $37,000 will get a gift of up to $255 with their tax returns. If you’re earning between $48,000 and $90,000, you will get $1080. The offset then scales down to nothing for anyone earning $126,000 or more.

Instant asset write-off. As part of the 2019 budget, businesses turning up to $50 million can write-off assets against their taxable income. Previously, businesses turning over more than $10 million were excluded from the scheme. The Coalition has also increased the threshold from $20,000 to $25,000.

Climate change and energy

Climate Solutions Package. This is the Coalition’s central emissions reduction policy and will cost $3.5 billion over 15 years. Measures include a climate solutions fund – an extension of the existing emissions reduction fund. The scheme pays farmers and others to reduce carbon dioxide emissions through activities such as improving energy efficiency or increasing native vegetation.

No steam without power.Credit:Joe Armao

Out of that package, $1.38 billion will go towards the expansion of the Snowy Hydro scheme, which will act as a giant battery to back up intermittent energy produced by other renewables.

Emissions target.

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The Coalition has committed Australia to reduce its emissions by 26 per cent on 2005 levels by 2030, in line with the Paris targets. To help get there, the Coalition will use so-called carry-over carbon credits from the Kyoto protocol period, in which Australia reached and exceeded its targets. Critics say using these credits is against the spirit of the Paris agreement.

National hydrogen strategy. Emissions-free hydrogen could replace energy generated by fossil fuels. Both Labor and the Coalition have plans to develop the technology and say Australia could be a global leader.

Coal-fired power stations and Adani. The Coalition has backed the Adani coal mine in Queensland’s Galilee Basin. It has floated the idea of using taxpayer money to upgrade a NSW coal-fired power station and pledged to fund a feasibility study into a new “high-efficiency, low-emission” coal plant in Queensland.

Health

Medicare. The Coalition has matched Labor’s promise of lifting the Medicare rebate freeze. This means Medicare payments to medical practitioners will increase to reflect what they say are rising costs associated with care.

Primary care. The Federal budget contained a $1 billion funding boost, including $448.5 million for GPs to better treat patients with chronic diseases, and investments in mental health. It will add 30 new Headspace centres to the network, build new residential eating disorder treatment facilities nationally and take new measures to prevent Indigenous youth suicide. Cancer patients will benefit from investments on infrastructure including a Comprehensive Children's Cancer Centre in Sydney and a centre of excellence for immunotherapy and CAR-T therapy.

Education

Schools. The Coalition has promised a $4.6 billion package for Catholic and Independent schools, which comes on top of $23.5 billion over 10 years for all schools as part of Gonski 2.0, signed up to by former prime minister Malcolm Turnbull.

Tertiary. The government has promised to fund up to 80,000 apprenticeships as part of a $525 million package. The budget also contained a $94 million scholarship program to get students to study in regional areas. In 2017, the Coalition introduced a two-year cap on university funding.

Education policy has been key to the government's success.Credit:Michele Mossop

Early childhood. The budget pledged $453 million to fund four-year-old kindergarten for another year and ensure children have access to 15 hours a week of preschool in the year before school. The Coalition has not outlined any long-term early childhood measures beyond its reforms of 2018.

Infrastructure

Inland rail. The Coalition has promised $9.3 billion for a 1700 kilometre freight line from Melbourne to Brisbane, but critics worry about its impact on floodplains and the 300-odd farms it might cut through.

East West Link in Victoria. It’s back, even though Melburnians have already turned down the proposal twice at state elections. The Coalition has promised $4 billion of taxpayer money and to leverage another $3 billion from the private sector, effectively bypassing the Andrews government.

Western Sydney. Projects totalling $7.1 billion have been promised for western Sydney, including $3.6 billion for road and transport connections to the new Badgerys Creek airport and $3.5 billion to the north-south rail link. Extra commuter parking will be created at St Marys, Kingswood, Emu Plains, Campbelltown, Panania, Revesby and Riverwood.

North East Link in Victoria. $1.75 billion has been promised to connect the M80 ring road with an upgraded Eastern Freeway.

Fast rail in Victoria. Could we finally see bullet trains? The Coalition has promised $2 billion for fast rail between Melbourne and Geelong, with the project supposedly beginning within two years. The catch is that the Victorian Government would need to match the funding.

M1 in NSW. A $1.6 billion extension of the M1 Pacific Motorway to Raymond Terrace has been promised.

Princes Highway in NSW. $500 million will be spent on the notorious highway between Nowra and Batemans Bay.

Newell Highway. The government has promised to spend $400 million on projects along the highway that connects Victoria, Queensland and NSW.

High-speed rail. The Coalition has also spent $20 million on studies for three potential high-speed rail links: between Melbourne and Shepparton; Sydney and Newcastle; and Brisbane and the Sunshine Coast. The business cases for those three proposals are due mid-year. It will add to these studies on the business case for links between Brisbane to Gold Coast; Melbourne to Albury-Wodonga; Melbourne to Traralgon; Sydney to Wollongong; and Sydney to Parkes via Bathurst and Orange.